Re: Authorized Users and Credit Scoring?

Everything else related to FICO scoring isolates your scoring to your own personal management of credit. That even includes no merging of scoring based on marriage.

AUs are the exception.

Aside from the actual scoring inflation, when a creditor is considering an app for credit based on inclusion of the history of another in your scoring, how are they to use your score should they want to determine your actual payment risk? Not having their own FICO algorithm, they cant.

They have no way of separating your contribution in the score from the joint scoring with the AU history, other than a guesstimate.

It thus, at least in my opinion, may result in their discounting of your entire FICO score in their decision making.

Re: Authorized Users and Credit Scoring?

Everything else related to FICO scoring isolates your scoring to your own personal management of credit. That even includes no merging of scoring based on marriage.

AUs are the exception.

Aside from the actual scoring inflation, when a creditor is considering an app for credit based on inclusion of the history of another in your scoring, how are they to use your score should they want to determine your actual payment risk? Not having their own FICO algorithm, they cant.

They have no way of separating your contribution in the score from the joint scoring with the AU history, other than a guesstimate.

It thus, at least in my opinion, may result in their discounting of your entire FICO score in their decision making.

I touched on the shared household income in another thread, so I'll just note here for income that's not shared that there are probably individuals who are thick on others' credit and thin on their own. Wouldn't skimming a credit report adequately satisfy the trained eye? Maybe the decision maker could have in place a threshold ratio of total credit for AU vs own?

Re: Authorized Users and Credit Scoring?

The trained eye would have to be able to calculate a FICO score, excluding the AU information.

Not even trained eyes have access to the proprietary FICO scoring algorithm, so no score could be produced.

Sure, one could view the CR and guess at the outcome, but then the entire FICO score becomes meaningless.

It could be said though that if one were to extract any AU and joint impact from the credit picture, one would put into doubt the ability of FICO to take into account such a factor, and where does it stop?

What if I fell behind paying the mortgage by myself and wasn't qualified for extra credit cards? What if DW likewise? Would such an individuality be any more realistic? The entire FICO score becomes meaningless.

Inspired by the intent to isolate, I looked into what my score would be without the AU cards provided by DW and also what her score would be without the AU cards provided to her by me.

It's highly unscientific, but I dusted off my own informal mini FICO toy approximator, a script that I once wrote to see how close I could get to what the EQ algorithm spits out.

It would appear I would lose ~10 points, due to her old Amex account, and she would gain ~5. No call for breaking up, we were married and had shared income already then.

The question is if we are fuller individuals when isolated or when sharing. Where would modern civilization be if not for interacting with each other? Would there be any Fair Isaac Corporation?

Re: Authorized Users and Credit Scoring?

I am pondering adding a relative to a credit card as an AU. How, if at all, does this impact my or other existing AU's credit score? Thanks in advance for your expertise!

Hello and welcome to myFICO.

Adding someone to one of your accounts as an AU has no effect on your credit whatsoever as long as they don't have access to a card. But if they happen to charge something and it raises your uitilzation then yes that could have an impact on your credit as well as any other AU's on your account(s).

So the best thing to do, in my opinion, is to add someone but not allow them any access to a card.

Re: Authorized Users and Credit Scoring?

Hello

I have a similar question about adding authorized users to an account. This is my first time doing this. I have tried to find answers online and even asked credit cards directly and have been given contradicting answers.

I, today, just added an authorized user to an Old Navy Visa credit card. I was told by a representative that the information from this credit card would be reflected on the authorized users credit report. When I asked how this could happen when they were only given a name, the person could not answer my questions so she transferred me to a supervisor. The supervisor then told me that as of 2011, account/credit card information IS NOT reflected on an authorized user's credit report. So, which is true?

I am hoping to assist in building the authorized user's credit score. I will not allow them access to the card, but I will be monitoring (approving) purchases and making sure payments are made on time.

I also read somewhere that whether or not account information is reported to the AU's credit report is up to the credit card peoples.

Can someone help me understand? If I am not able to help their credit score, I have no reason to have them as an authorized user. Thank you in advance for your help!

Re: Authorized Users and Credit Scoring?

devon22ou wrote:

Hello

I have a similar question about adding authorized users to an account. This is my first time doing this. I have tried to find answers online and even asked credit cards directly and have been given contradicting answers.

I, today, just added an authorized user to an Old Navy Visa credit card. I was told by a representative that the information from this credit card would be reflected on the authorized users credit report. When I asked how this could happen when they were only given a name, the person could not answer my questions so she transferred me to a supervisor. The supervisor then told me that as of 2011, account/credit card information IS NOT reflected on an authorized user's credit report. So, which is true?

I am hoping to assist in building the authorized user's credit score. I will not allow them access to the card, but I will be monitoring (approving) purchases and making sure payments are made on time.

I also read somewhere that whether or not account information is reported to the AU's credit report is up to the credit card peoples.

Can someone help me understand? If I am not able to help their credit score, I have no reason to have them as an authorized user. Thank you in advance for your help!

I have had a very similar experience and I am looking for an answer as well.. anyone?

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Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating.
FTC's website on credit.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.